Acquisition of TravelLodge Hotel, Lowestoft, UK

RNS Number : 6260O

Alpha Real Trust Limited

13 June 2022

 

13 June 2022

LEI: 213800BMY95CP6CYXK69

ALPHA REAL TRUST LIMITED ("ART" OR THE "COMPANY")

acquisItion of a TRAVELODGE HOTEL IN LOWESTOFT, UNITED KINGDOM

ART announces it has acquired a hotel in Lowestoft, United Kingdom for £3.1 million including acquisition costs.

The property is leased to Travelodge Hotels Limited,  the United Kingdom's largest independent hotel brand with more than 590 hotels. The hotel has an 18 year unexpired lease term. Under the lease, the tenant is responsible for building maintenance and the passing rent of £0.2m p.a. has inflation linked adjustments, reflecting a yield of 6.2% p.a.

ART has acquired the asset for cash.

The 47 - bedroom property is held freehold and occupies a site of 1.08 acres in Lowestoft, a well-established and well connected area located in close proximity to the A47 which runs to Norwich .

Investment rationale

This acquisition offers the Company the potential to benefit from a long term, predictable, inflation-linked income stream whilst contributing additional diversification to ART's portfolio. In addition, the investment offers the potential for associated capital growth. 

For further information please contact :

Alpha Real Trust Limited

William Simpson, Chairman, Alpha Real Trust                          [phone]

Brad Bauman, Joint Fund Manager, Alpha Real Trust              [phone]

Panmure Gordon, Broker to the Company

Atholl Tweedie    [phone]

 

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